A Put Option Was Purchased Two Months Ago for $3

question 26

Multiple Choice

A put option was purchased two months ago for $3.70 with an exercise price of $50. The option is exercised when the market price of the stock is $48. What is the net profit or loss to the investor?

• A) $3.00
• B) $2.70
• C) −$1.70
• D) −$2.00
• Answer Key
• Test name: Chapter 21

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Definitions:

Underextension

A vocabulary error in which the infant applies a word too narrowly to a single object rather than the more appropriate, wider class of objects.

Overextension

In language development, it refers to the process by which children apply a word in a broader context than is appropriate, demonstrating their grasp of language categories.

Learning Theory

A framework that describes how students absorb, process, and retain knowledge during learning.

Unique Utterances

Original or novel spoken expressions or statements made by an individual.